Hello- my new accountant is currently preparing mine and my wife's tax returns. He tells me that to determine our applicable Medicare Levy rate: it is based on our family income and that we need to add back into our taxable income the rental loss on our 2 neg. geared props. Is this correct?Additionally, I have a grossed up reportable fringe benefits amount that he says should be added back too. Is this correct? A second opinion by an accountant would be very much appreciated as it effects us quite negatively and I've not heard this before. Much thanks.JPS25Participant@jps25Join Date: 2010Post Count: 121
Yes this is correct.
Ouch! Thanks for verifying JPS- appreciated. I can obviously trust the new accountantJPS25Participant@jps25Join Date: 2010Post Count: 121
I know we got stung by extra 1% medicare levy last year the amount of tax is still based on your adjusted earnings but they factor in losses and super etc to decide if you qualify to pay the extra. We should be just under this year if I have my end of year figures right.
Yeah. This caught me with my pants down- all due to a long service leave payout, which of course I think is a bit rough. We have never earned enough income previously for this issue to come up at tax time. It's about 2k additional payment to the ATO on both me and my wife combined this year. Thanks again for your input. If you have any magic wand type ideas to share re possible deductions I would be most grateful IJC